INLAND EMPIRE, CA—The Inland Empire market, comprised of Riverside and San Bernardino counties, went through a significant downturn during the recession that is only now starting to see real signs of recovery. So says Praedium Group‘s Asim Hamid.
The director explains that as one of the last markets in the country to improve—employment is still 10% off its peak—there is a real opportunity for growth. That makes it “a prime area for multifamily investment.”
There are two main factors driving the area’s progress, he says. One is the increase in new home building, which is spurring jobs in the construction industry. The second catalyst is the strength of the nearby ports in Los Angeles.
FedEx and UPS have sizable distribution centers in the area, easily accessible by the many major highways nearby.
As owners of approximately 1,000 units in the area, Praedium is experiencing first-hand how pricing power is returning in this market. In the residential assets it owns, he notes that the firm has seen accelerating increases in rental rates this year, in comparison to the same period a year prior.
Oversupply is not an issue in this market, says Hamid, “since rental prices are not justifying new residential developments.”
According to Hamid, “with the projected job growth combined with climbing home prices, fundamentals should continue to improve in the market.”